Yesterday, 18MAR2021, I decided to close a McCormick (MKC) covered-call option position (strike: $90; expiration: 16APR2021) because it had been within 3.5% of the strike price with four weeks remaining before expiration. These two option contracts had been intended to liquidate 200 MKC shares to move the position to a tax-advantaged account. After our Berkshire Hathaway covered-call option liquidated 100 Berkshire shares on 12MAR2021, we moved that capital to the tax-advantaged account. Effective income for 2021 was thereby reduced by the significant contribution of the Berkshire position and I thought it best to wait to move the MKC position during the 2022 tax year.
All told, we did net $77.25 on the two MKC covered-call contracts for the 22 days the position was active. I will sell another covered call on our MKC shares in 2021 but only if the market presents a attractive terms.